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Income and Poverty across SMSAs: A Two-Stage Analysis

Author

Listed:
  • Robert M. Leekley

    (Illinois Wesleyan University)

  • Michael C. Seeborg

    (Illinois Wesleyan University)

Abstract

Two popular explanations of urban poverty are the "welfare-disincentive" and "urban-deindustrialization" theories. Using cross-sectional Census data, we develop a two-stage model to predict an SMSAs median family income and poverty rate. The model allows the city's welfare level and industrial structure to affect its median family income and poverty rate directly. It also allows welfare and industrial structure to affect income and poverty indirectly, through their effects on family structure, education, and employment. The results give limited support to both the welfare-disincentive and urban-deindustrialization explanations of urban income levels and poverty rates.

Suggested Citation

  • Robert M. Leekley & Michael C. Seeborg, 1993. "Income and Poverty across SMSAs: A Two-Stage Analysis," Eastern Economic Journal, Eastern Economic Association, vol. 19(1), pages 43-58, Winter.
  • Handle: RePEc:eej:eeconj:v:19:y:1993:i:1:p:43-58
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume19/V19N1P43_58.pdf
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    References listed on IDEAS

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    1. Ashenfelter, Orley, 1972. "Racial Discrimination and Trade Unionism," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 435-464, May-June.
    2. Ihlanfeldt, Keith R & Sjoquist, David L, 1990. "Job Accessibility and Racial Differences in Youth Employment Rates," American Economic Review, American Economic Association, vol. 80(1), pages 267-276, March.
    3. Sheldon Danziger & George Jakubson & Saul Schwartz & Eugene Smolensky, 1982. "Work and Welfare as Determinants of Female Poverty and Household Headship," The Quarterly Journal of Economics, Oxford University Press, vol. 97(3), pages 519-534.
    4. Danziger, Sheldon & Haveman, Robert & Plotnick, Robert, 1981. "How Income Transfer Programs Affect Work, Savings, and the Income Distribution: A Critical Review," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 975-1028, September.
    5. Ellwood, David T & Crane, Jonathan, 1990. "Family Change among Black Americans: What Do We Know?," Journal of Economic Perspectives, American Economic Association, vol. 4(4), pages 65-84, Fall.
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    Citations

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    Cited by:

    1. John Iceland, 1997. "Urban labor markets and individual transitions out of poverty," Demography, Springer;Population Association of America (PAA), vol. 34(3), pages 429-441, August.

    More about this item

    Keywords

    Welfare;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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